Quick Callback

Something You Took Away Last Week

From Buildings → The Rules That Build Them

Two Sides. Two Economic Worldviews.

The Core Tension

From last: Energy as the source of GHG contributor

Why do we care so much about understanding the role - and the lack thereof - of energy within the scope of understanding energy?

Pro/Cons

• Why is energy so important?
• Why can we not make do with lesser available energy?
• What is causing the transition to pause?
• Why have we came to this point where most of the energy sources are known to have issues?

But what about other energy sources and how they came to being?

• Industrial processes
• 1st and 2nd Industrial Revolution
• Energy & SURPLUS:
  • Source
  • Transportation
  • End-User
  • Importer (Much more complicated)
• Energy issues arise when put out at scale

Surplus exchange fostered market and currency, an aggregated version of which ultimately becomes capital.

What is capital?

The accumulated wealth of an individual, company or community, used as a fund for carrying on fresh production; wealth in any form used to help in producing more wealth.

What is Capitalism?

“Capitalism and”Capitalist” are 19th (middle 1800s) Centry Pejoratives.

• enormous productive capacity.

• always on the edge of being o.ut of control

• attack the existing the economic system

• not a highly productive system but an unjust stystem

Who was this person whose photo was taken by Steichen?

• Does he look warm and fuzzy?
• What’s he holding?

Do we know who this is?

Capitalism is… (per Karl Marx)

• Disease for which scientific socialism is the cure;
• A method by which to steal the labor of the exploited masses;
• A system that undermines every traditionally established way of making a living; (known trademark of capitalism)
• A system that inevitably undermines its own foundations.

Capitalism is therefore per current definitions:

• a name given by its enemies
• a system relies heaviliy on the private use of capital combined with profit motive founded on self/family interests
• has hundreds of variations in terms of capitalism system, but the essentials remains unchanged:
  • private deployment of capital
  • open acknowledgement of profit as a motive
  • sympathetic understanding of self or household interests
  • tolerance for innovation: characteristic fact of historical society is resistance to it as a kind of human nature to resist fresh innovations.

Some side readings that I do recommend to take this class (and many more in the near future.)

1. Wealth of Nations (Smith, Bantum Paperback)
2. Manifesto (Marx)
3. The Consititution of Liberty (Hayek, market conservative and conservative movement)
4. Farewell to Alms (Gregory Clarke, capitalism more and better, polemical work written by economist)
5. The Mystery of Capital (Hernando Desoto, why less developed countries exist in the world: formal and enforceable property rights are precondition to capital devleopment)
6. A Failure of Capitalism (Posner, Judge, Conservative judge teaching at Chicago law school, no obvious ideological distortion)
7. The Bottom Billion (Paul Collier, world bank economist, diagnosis and a strategy for using capital development to alleviate most of the world’s poverty)
8. The White Tiger (Fiction, describing the realworld penetrating novel written from the point of view of a very poor, smart and flawed young man in south india. Man booker prize. 2008.)

Quick Overview of Relevant Concepts Known to be tied to climate change

• Capitalist Realism (Frederic Jameson):
  • Capitalism is the only viable economic system and that
  • alternatives are unimaginable.
• Disaster Capitalism (Naomi Klein): exploitation of natural disasters and crises for profit.
• Surveillance Capitalism (Shoshana Zuboff): using technology to monitor and control individuals in the name of profit.
• Zero Marginal Cost Society (Jeremy Rifkin):
  • hypothetical society
  • technology and automation make goods and services virtually free,
  • potentially leading to a post-scarcity economy.
• Green New Deal:
  • proposed economic plan
  • aims to transition the economy to become carbon-neutral and environmentally sustainable while
  • promoting social justice and economic growth.

Breaking it down a bit further with possible angles to propose solutions/interventions:

The tragedy of the commons:

• Prioritize own interests over common goods
• Individuals and Corporations
• New economic system may help, but how?

See It: The Pattern That Keeps Repeating

One Image. One Question.

The limitations of carbon pricing: price GHGs emissions(aka pay to pollute)

• usual solution to climate change
• TLDR explanation: pricing pollution
• might include: carbon credit (right), carbon tax (all), carbon offset (+/-)
• government selling right to pollute?
• moving price target with carbon worsening/improving?
• carbon-for-trade or carbon-for-profit?

Continued: The need for a post-growth economy:

• Continued growth mindset is unsustainable
• New economic system that prioritize environmental sustainability with a focus on well-being, equity and sustainability over GDP growth

Bhutan’s Gross National Happiness

• Measuring progress through Gross National Happiness Index
• Emphasize well-being, environmental conervation and cultural preservation

Collective ownership:

• Shift from individual ownership to collective models
• Prioritize community and environmental needs

Mondragon Corporation in Spain

• Corporation and federation of worker cooperative based in Basque region of spain
• One of the largest cooperatives, owned and operated by workers
• Emphasize social and community benefits over individual profit

Community Land Trusts

• Nonprofit, community-based orgnization
• Aim to propvide affordable housing by owning and managing land collectively (e.g. Boston, London)

Paradigm Shift in Economics

• Exploration of steady-state and circular economies
• Long-term sustainability and meeting societal needs
• Reevaluating values and assumptions in capitalism

New Zealand’s Wellbeing Budget:

• prioritize national well-being over traditional economic measures
• spending focused on mental health, child poverty, and environmental preservation.

Nordic Model:

• Scandinavian countries (Sweden, Norway, Denmark, Finland, and Iceland)
• free market capitalism + comprehensive welfare state and collective bargaining at national level
• focusing on social equality and well-being.

Mixed Economy Approach

• Combining capitalism and socialism elements
• Balancing economic growth with environmental sustainability

Germany’s Social Market Economy:

• A capitalist economic system + a framework of social policies
• balancing free enterprise with social welfare measures and environmental protection.

Singapore’s Blend of Capitalism and Social Policies:

• competitive and open market policies + strong state intervention
• seen effect in housing, healthcare, and public transport to ensure social welfare.

General Public’s Obvious Response

Understanding Role in a Sustainable Future

• Every action counts
  
• Lead by example
  
• Inspire change in your community

Possible Actions to take

• Community Participation:
  • Join or start local sustainability initiatives
    
  • Engage in community-based conservation projects
• Educate and Spread Awareness:
  • Share knowledge about sustainability practices
    
  • Encourage friends and family to adopt eco-friendly habits
• Practice Responsible Consumption:
  • Support ethical and sustainable brands
    
  • Reduce, reuse, recycle in daily life
• Personal Investment in Sustainability:
  • Use public transportation, bike, or walk when possible
    
  • Grow your own food or support local, sustainable agriculture
  • Invest in renewable energy and electric vehicles/efficient appliances

The Formula (Reminder)

PRO-CLIMATE: Make It Personal

PRO-DEVELOPMENT: Paint the Picture

What are the possible negative impact if as a society we switch to a new economy model that turns out to be wrong?

• Economic Slowdown
• Investment Displacement
• Innovation Misdirection: innovation encouraged in the wrong sector
• Increased Cost of Living: carbon tax reflected in day-to-day expenses
• Energy Insecurity
• Unintended Environmental Consequences: e.g. promoting biofuels too much leading to deforestation
• Social and Economic Inequality: Unfair to those without means of transition, exacerbating inequalities
• Resistance and Backlash

PRO-CLIMATE Arguments for a Resilient HK Economy

• Innovative Market Solutions:
  • Embrace green tech startups and innovations.
  • Foster a competitive market for renewable energy.
• Flexible Economic Models:
  • Test sustainable business practices and circular economy models.
  • Encourage investment in green infrastructure and public transport upgrades.
• Public-Private Partnerships:
  • Collaborate on sustainability projects, like smart city initiatives.
  • Leverage private capital for public good, with government incentives.
• Policy Reforms for Sustainability:
  • Implement progressive environmental regulations that encourage innovation.
  • Introduce carbon pricing to incentivize low-carbon operations.
• Community Engagement and Education:
  • Increase public awareness campaigns on environmental issues.
  • Support community-led sustainability initiatives for broader impact.

PRO-DEVELOPMENT Arguments for HK’s Economy

• Economic Stability Focus:
  • Prioritize economic growth and stability over experimental green policies.
  • Maintain a business-friendly environment to ensure job security.
• Proven Strategies Only:
  • Rely on established, efficient technologies and practices.
  • Avoid untested economic models that risk market disruption.
• Minimal Regulatory Changes:
  • Caution against over-regulation that could hinder business operations.
  • Advocate for voluntary corporate sustainability measures.
• Cost-Benefit Analysis:
  • Evaluate environmental initiatives based on ROI and economic impact.
  • Ensure environmental policies do not overly burden SMEs.
• Incremental Improvements:
  • Focus on gradual enhancements in energy efficiency and waste management.
  • Support small-scale, low-risk green initiatives with clear benefits.

Create Your Persona

Remember: Fact-Check Your Stories

Human Story: The Shenzhen Factory Worker

The Specificity Illusion

The Science

You Just Saw It

Next Week’s Challenge